…they'll be crossing invisible lines of police tape that should be telling stock buyers to stay away — far away — from going long equities!

It's a Dead Zone, Mister

You know the Verizon (VZ) commercials that talk about the "dead zone?" Well, that's what we're facing on the earnings front — the lull before the earnings storm that doesn't start rolling until the first full week of January.

Only two companies of note reported last week, and one — Micron Technology (MU) — is a $2.50 stock. Remember back earlier this decade when MU traded above $90?

The other was Walgreen (WAG). Analysts scaled back their expectations for WAG, which has averaged earnings growth of about 8% during the past four quarters. The consensus estimate for Q1 was the same as last year, which is saying something for a retailer.

Earnings were mixed bag, with a 10.4% decline in net earnings but a 6.6% increase in sales (to a record $14.9 billion), thanks to a bump in prescription sales. But sentiment and the chart make WAG a tough trade.

The stock has been clinging to the $25 level for a couple of weeks, unable to move with the market in either direction. And while only 40% of covering analysts rate the stock a "Buy," the put/call ratio is scraping the bottom of its annual range.

It's tough to get a read with such a mixed picture, especially in a market that's zigging and zagging.

A Portfolio "Staple"

With earnings season ready to kick off in earnest, a few sectors continue to see higher expectations based on their respective year-over-year earnings growth estimates.